PUTRAJAYA: Communications and digital minister Fahmi Fadzil has brushed off concerns by the US and EU over risks to national security and foreign investment amid purported interest from Huawei for a role in the country’s 5G rollout.
He said his ministry would meet with all foreign ambassadors who were concerned with the matter to explain the government’s position.
“It’s important for us to stress that as a sovereign nation, Malaysia and the Malaysian government have the right and power to decide on our own policies without interference by others,” he said at a press conference here today.
He added that any decision by the government on the matter would not only benefit the people and spur economic growth but would be made “harmoniously” with international concerns.
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He also said the government will remain neutral in such matters, adding that the priority is to ensure a sustainable 5G ecosystem and to address key concerns raised.
Yesterday, the Financial Times reported that envoys to Malaysia from the US and EU wrote to the government last month after it decided to review a decision to award Ericsson the tender to build the state-owned 5G network. The envoys’ letters have been seen by the Financial Times.
The Financial Times reported that Huawei, the Chinese equipment maker blacklisted by Washington, had lobbied heavily for another chance at a role in building Malaysia’s 5G network. Huawei and Finland’s Nokia were beaten by Ericsson in the open tender process.
In the letter, US ambassador to Malaysia, Brian McFeeters, said allowing “untrusted suppliers” in any part of the network subjects Malaysia’s infrastructure to national security risks.
Last December, Prime Minister Anwar Ibrahim ordered a review of the RM11 billion 5G network contract awarded by Digital Nasional Bhd (DNB) – a special purpose vehicle (SPV) created under the finance ministry – to Ericsson under the previous administration. He said this was necessary to ensure that relevant parties had followed strict procedures.
Earlier, FMT reported that Putrajaya agreed to proceed with the single wholesale network through DNB until 80% coverage to populated areas had been achieved. By early 2024, a shift to a dual network will commence in Phase 2 of the rollout of the 5G network.
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